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With the recent passage of Assembly Bill 2016 (AB 2016), California’s probate landscape is poised for significant changes—and increased complexity. While the bill aims to streamline the transfer of a decedent’s primary residence through a simplified court petition, the real-world application of this law may present more challenges than solutions for families dealing with estate administration.

Our attorneys have reviewed the new process and identified several critical issues that could impact beneficiaries, estate representatives, and even legal professionals. Here’s what you need to know before relying on the new Petition for Succession to Primary Residence.

1. Getting All Beneficiaries to Sign May Be Easier Said Than Done

One of the main hurdles with AB 2016 is that every person inheriting the property must sign the petition. Unfortunately, this assumes that all heirs are on good terms—or even in contact. In many families, this simply isn’t the case. Disagreements, estrangement, or even the inability to locate a beneficiary could stall or completely derail the petition process.

2. “Tenants in Common” Means Trouble Ahead

If the petition is approved, the court will order that the property be transferred directly to the heirs as tenants in common. This structure gives each person equal ownership but no obligation to agree on what to do with the property. This is a common precursor to partition actions, where one or more co-owners ask the court to force the sale of the home. Instead of preventing court delays and litigation, this law may cause more of it.

3. No Plan for Managing the Property

With multiple owners come multiple opinions—and responsibilities. Who pays the property taxes? Who handles maintenance and repairs? What if one heir wants to rent out the home while another wants to live in it? These questions often lead to disputes, especially when no agreement is in place. One heir could end up shouldering the financial burden while others enjoy the benefits.

4. Proving It Was the Decedent’s Primary Residence

Before the court grants the petition, the heirs must prove that the property was the decedent’s primary residence. That’s not always straightforward. Courts will also require information about how title is held and whether the property was separate, community, or quasi-community property. In many counties, a preliminary title report is required, which can cost over $1,000 upfront.

5. Legal Fees Upfront? Yes, Likely.

In traditional probate, attorney and executor fees are paid from the estate after the assets are liquidated. But this new process changes the game. If the estate lacks cash, heirs may have to pay legal costs upfront just to get started. For many families, especially those who are asset-rich but cash-poor, this creates a significant burden.

6. Rising Costs Across the Board

Contrary to the bill’s goal of simplifying the process, costs are likely to increase. Law firms will be less willing to work on contingency or statutory fees, opting instead for hourly billing due to the unpredictable workload. Even small estates can require substantial time and effort, especially when banks or title companies insist on formal probate letters. Add to that the possibility of double court filing fees—one for the residence, and another if the remaining assets require formal probate—and the expenses mount quickly.

7. Creditor Claims Still Apply

Assets transferred under this new petition process remain subject to creditor claims. Unlike formal probate, where creditors are given notice and deadlines to file claims—and are barred if they don’t—AB 2016 provides no such structure. This leaves beneficiaries vulnerable to future lawsuits or collection efforts long after they’ve taken possession of the home.

8. Title Insurance May Be Hard to Get

A property with questionable legal history is a red flag for title companies. Many title insurers have already expressed reluctance to cover properties transferred through this new method. This could create roadblocks if heirs later decide to refinance or sell the property, as most lenders require clean title and insurance.

9. Don’t Try This at Home

While the process may seem like a shortcut, it’s more complex than it looks. Many people will attempt to file the petition without legal help, only to discover—too late—that their paperwork is defective. Common pitfalls include:

• Failing to properly notify interested parties
• Overlooking clouds on the title
• Submitting orders the court cannot legally enforce

These errors can delay the process or render the court’s order invalid, ultimately forcing families back into full probate.

10. Minor Beneficiaries Pose a Major Problem

One significant oversight in AB 2016 is the treatment of minor beneficiaries. Children under 18 cannot legally hold title to real property. This means that if a minor is among the heirs, a court-supervised guardianship of the estate must be established to hold the property on the child’s behalf. These guardianships are not only time-consuming and expensive, but they remain in effect until the child turns 18—and every decision involving the property must be approved by the court. What was meant to be a streamlined process can quickly turn into a complex, costly ordeal.

Final Thoughts

AB 2016 may have been well-intentioned, but in practice, it introduces new risks and uncertainties for families managing the transfer of a loved one’s home. If you're considering using the new Petition for Succession to Primary Residence, it's crucial to seek professional legal guidance. Further, the process can be avoided all together with a properly created Trust.